Child Benefit Savings and Loan Plan

Child Benefit Loan & Savings Plan

Helping families to make the most of their money

Apply immediately for a loan up to £500. If your loan is approved, we'll ask you to arrange to pay your Child Benefit in the account which will be split between your loan repayment and savings.

  • Borrow up to £500
  • 42.6% APR Interest Rate
  • Repayments come straight from your Child Benefit
  • Save as you repay your loan with instant access to savings
  • No hidden fees, charges or repayment penalties
  • Free Members' Death Benefit Scheme (terms and conditions apply)
  • Awarded 5* by the Fairbanking Foundation

Step 1: Download, print and complete the Loan Application (along with a Membership Application if you're not already a member). Please write your 10 digit Child Benefit reference number on the front of the application form (you'll find this on the notification letter or other papers you have from the Child Benefit Office).

Step 2: Provide two or three acceptable items of identification (if you aren't already a member)

Step 3: Provide recent bank or Post Office statements showing income regularly going in.

Step 4: Once your loan is approved, you'll need to call the Child Benefit processing centre on 0845 302 1444. Tell them that you want to pay your benefits to the Credit Union and give them our bank details: Co-operative Bank, Sort code: 08-92-50 Account number: 67005844.

Step 5: When your Child Benefit payment hits your account, let us know and we'll prepare a Loan Agreement form for you to sign. At this stage, you'll also know what your loan repayment will be and how much of your Child Benefit you'll have left over to save.

Step 6: We'll issue your loan funds.

All loans provided by Hull & East Yorkshire Credit Union are subject to status and our lending policy. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised.

Who can apply for the Plan?

You must: a) be a member of Hull & East Yorkshire Credit Union, b) be aged over 18, c) be registered on the voters roll, d) have your Child Benefit paid into your Credit Union Membership Account until the end of the Plan.

How do I repay the Loan?

Your Loan will be repaid with your Child Benefit payments which will need to be paid into your Credit Union Membership Account.

How much could the repayments be on a £500 loan?

Child Benefit Paid Repayment Term Interest APR Total Repayment
Weekly £12.00 per week 50 weeks £91.95 42.6% £591.95
4-Weekly £50.00 per 4-weekly 12 x 4-weekly installments £93.58 42.6% £593.58

How do I save with the Plan?

When your Child Benefit is paid into your Credit Union account, your loan payments will be deducted and the remaining funds will be transferred into your savings.

How much might I save?

In addition to repaying your loan, by depositing your Child Benefit with HEYCU you will build up your savings as you go, see below how you much you could save over a year.

Children Child Benefit By the end of your loan, you'll have a lump sum of:
1 £20.70 per week £435
2 £34.40 per week £1,120
3 £48.10 per week £1,805

Can I withdraw my savings?

Yes, you can withdraw your Child Benefit savings as per our Membership Account Terms & Conditions.

Can I save separately to the Plan?

Yes. You can still save with additional monies and also open other Credit Union savings accounts.

How can I apply for the Plan?

Simply complete the Credit Union Loan application form (marking your 10 digit Child Benefit reference number on the front) and provide proof of your income (see below). If you’re not already a member, you will need to join and provide at least two acceptable proofs of ID at the same time.

What will you need as a proof of my income?

Recent bank or Post Office statements, showing at least a months’ worth of income.

Do I need to be employed to apply for the Plan?

No, as long as you can provide proof of regular income as stated above.

Do you do a credit check?

Yes. Each Loan application is assessed on an individual basis and takes into consideration a variety of factors including the affordability of the Loan, previous savings and borrowing patterns with the Credit Union, credit history and so on. Information on how we use Credit Reference and Fraud Prevention Agencies to check your credit history is supplied separately on request and on our website.

How long does it take to make a decision?

Once your application is complete with all supporting documents, we aim to make a decision within 5 working days. It may take a little longer at busy times such as Christmas and holiday seasons.

How much can I borrow on the Plan?

You can apply for a Loan up to £500.

Do you offer joint Loan accounts?

Not currently.

How often must I make repayments?

According to the frequency of when you receive your Child Benefit (Weekly or 4-weekly).

How do I collect my Loan money?

We can transfer money to your bank account, give you a cheque, or, by agreement in advance, you may be able to collect cash from a branch. If you want to use your Loan money to pay any existing credit or bills, we can arrange to pay these for you.

What interest do I pay?

42.6% APR.

How is interest applied?

It is applied to your Loan daily and calculated on the outstanding balance. This means that if you settle your Loan early you will pay less interest.

What term do I pay my Loan over?

Over one year.

Are there any penalties or hidden charges for clearing my Loan off early?


What happens if my Child Benefit stops or is no longer paid into the Credit Union?

As you will still be liable to make your Loan repayments, you will need to select an alternative method of payment such as bank standing order or Direct Debit.

How often will I get a statement?

Statements are provided upon request, or you can check your balance by registering with us on our website.

What if I cannot afford my repayments?

Get in touch with our Credit Control department without delay to discuss a reduced payment plan. Failure to keep up repayments could have a serious effect on your credit report and ability to obtain future credit.

What about insurance?

We don’t offer insurance as such, but your Loan may be covered by our free Members’ Death Benefit Scheme

Updated 12.5.17

All loans provided by HEYCU are subject to status and our lending policy. Applicants must be aged over 18. The Credit Union reserves the right to decline any application or offer a loan that differs from those advertised. To find out more about how we use your data to help us make decisions on loans please read our Privacy Policy.

When taking up a Child Benefit Loan & Savings Plan with Hull & East Yorkshire Credit Union, the Borrower will sign a Loan Agreement which sets out the following terms and conditions:

1) The Borrower will repay the Loan that the Lender has advanced them, plus interest.

2) The Borrower will continue to make repayments until the Loan and any interest on the Loan due to the Lender have been repaid in full.

3) The Borrower has the right to settle the Loan early at any time by paying in full the balance of the Loan and any unpaid interest outstanding. The Lender will, on request, provide the Borrower with a written statement of the sums which have been paid and which remain outstanding under the Agreement.

4) The Borrower agrees to inform the Lender immediately of any change to their financial circumstances which may affect their ability to repay the Loan or of any change in their address.

5) If the Borrower fails to pay any amount due to the Lender under the Loan Agreement, or breaches any of its terms, the Lender has the right to demand early repayment of all of the balance of the Loan outstanding, together with any unpaid interest.

6) The Borrower agrees to be liable for all costs, charges or expenses of whatever nature of recovering any sums due under the Loan Agreement.

7) The Borrower agrees that if they default on their repayments, information about their Loan may be passed on to the Department for Work and Pensions for their consideration of deductions from the benefits that they are or will become entitled to.

8) The Borrower assigns to the Lender all paid shares held now or in the future in the Credit Union, as security for payment of the Loan and for interest or expenses which may be due and authorises the Lender to apply any or all such shares towards payment of the Loan, interest or expenses which are owed.

9) We, as the Lender, may use credit reference and fraud prevention agencies to help us make decisions. If you would like to read the full details of how your data may be used please see our Privacy Policy



Borrower - The member named on the Loan Agreement

Lender - Hull & East Yorkshire Credit Union

Loan - the sum that the Lender has advanced to the Borrower, plus interest

Shares - The amount in your savings account(s) with Hull & East Yorkshire Credit Union.